first-time-buyers2 min read

How a First-Time Buyer with 589 Credit Got Into a Home with $0 Down

Don't let a low credit score or no savings stop you. Credit repair + down payment assistance programs exist specifically for this situation. The whole proc...

By Aditya Choksi••Updated Mar 22, 2026

The Situation

A borrower reached out through our Facebook ad. They were a first-time buyer making $55,000/year with a 589 credit score and literally zero saved for a down payment. They'd been told by two other lenders that homeownership wasn't possible right now.

What Programs Were Available?

After reviewing their full financial picture, here's what they qualified for:

  • FHA: Min credit 580, 3.5% min down, PMI required

How We Solved It

First, I referred them to my credit repair specialist, Tom. Within 90 days, they got their score from 589 to 640 — enough for FHA.

For the down payment problem, I matched them with California's MyHome Assistance Program (CalHFA), which provides up to 3.5% of the purchase price as a deferred second loan. That covered their entire FHA down payment.

We used FHA financing at 3.5% down (covered by DPA), keeping their total out-of-pocket costs under $2,000 for closing.

The Result

They closed on a $350,000 home in Riverside County with a monthly payment of $2,450 — less than their rent. Zero down payment out of pocket.

Key Takeaway

Don't let a low credit score or no savings stop you. Credit repair + down payment assistance programs exist specifically for this situation. The whole process took about 4 months from first contact to keys in hand.


Think You Might Be in a Similar Situation?

Every borrower's scenario is different, but the process is the same: we look at your full picture, find the right program, and create a plan. Whether it's credit repair, down payment assistance, or a specialized loan program — there's usually a path.

Schedule a free consultation to see what you qualify for. No obligation, no pressure — just honest answers about your options.

Contact Aditya Choksi | NMLS #2055084 | (949) 478-7641


This scenario is based on a real borrower situation. Names, exact figures, and identifying details have been changed to protect privacy. Your qualification depends on your specific financial situation.

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Aditya Choksi

California mortgage expert helping homebuyers navigate the path to homeownership. NMLS #2055084 | DRE #02154132

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Licensing & Regulatory Information

Company: 21st Century Lending, Inc. | NMLS Company ID: 241835

Licensed Loan Originator: Aditya Choksi | NMLS ID: 2055084 | DRE License: 02154132

Licensed by the California Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. Also licensed in Arizona, Colorado, Georgia, New Mexico, and Washington.

This is not a commitment to lend. Loan approval subject to credit approval and property appraisal. All loans subject to underwriting approval. Rates, terms, and programs subject to change without notice. Not all applicants will qualify. Not all products and services are available in all states.